Thirty-fifth meeting of the GCF Board (B.35)

This matter was considered by the Board in an executive session.

A limited distribution decision was adopted under this agenda item: 

DECISION B.35/01 on accreditation master agreements 

The Board, having considered document GCF/B.35/17 titled “Appointment of Members of the Independent Technical Advisory Panel”:

1. Recalling the updated terms of reference of the independent Technical Advisory Panel as noted in decision B.BM-2018/09;
2. Endorses the nomination by the Investment Committee of the following experts to the independent Technical Advisory Panel for one three-year term starting on 1 April 2023:
   1. Ina Hoxha (Female, Albania);
   2. Jan Martin Witte (Male, Germany);
   3. Jurg Grutter (Male, Switzerland); and
   4. Kenel Delusca (Male, Haiti).

The Board, having considered document GCF/B.35/18 titled “Individual Performance Evaluation for Reappointment of Members of the Independent Technical Advisory Panel”:

1. Decides that the performance review of the members of the independent Technical Advisory Panel shall be undertaken by an independent firm, with the aim of presenting the outcome of the performance review to the Board for consideration at its thirty-seventh meeting, pursuant to the terms of reference included in annex IV; and
2. Requests the Secretariat to procure the independent firm referred to in paragraph (a) above.

The Board:

1. Appoints as a member of the Accreditation Committee, Walter Schuldt;
2. Also appoints as a member of the Budget Committee, Jaime Tramon; 
3. Further appoints as a member of the Ethics and Audit Committee, Nino Tandilashvili, replacing Nadia Spencer-Henry;
4. Appoints as a member of the Ethics and Audit Committee, Hillary Clifford, replacing Victoria Gunderson;
5. Also appoints as a member of the Performance Oversight Committee of the Executive Director and Heads of Independent Units, Hussein Alfa Nafo, replacing Nauman Bashir Bhatti as the developing country representative; and
6. Further appoints as members of the Risk Management Committee, for the remainder of the fourth term of the Board ending 31 December 2024:
   1. Diann Black-Layne;
   2. Orlando Garner;
   3. Mark Dennis Y.C. Joven;
   4. Jaime de Bourbon de Parme;
   5. Malin Meyer; and
   6. Sarah Metcalf

The Board, having considered document GCF/B.35/02 titled “Consideration of funding proposals”:

1. Takes note of the following funding proposals:
   1. Funding proposal 199 titled “Public-Social-Private Partnerships for EcologicallySound Agriculture and Resilient Livelihood in Northern Tonle Sap Basin (PEARL)” by the Food and Agriculture Organization of the United Nations (FAO), as contained in document GCF/B.35/02/Add.01/Rev.01 and 10;
   2. Funding proposal 200 titled “Scaling up the implementation of the Lao PDR Emission Reductions Programme through improved governance and sustainable forest landscape management (Project 2)” by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, as contained in document GCF/B.35/02/Add.02/Rev.01 and 10;Annex
   3. Funding proposal 201 titled “Adapting Philippine Agriculture to Climate Change (APA)” by the Food and Agriculture Organization of the United Nations (FAO) as contained in document GCF/B.35/02/Add.03/Rev.01 and 10;
   4. Funding proposal 202 titled “Upscaling Ecosystem Based Climate Resilience of Vulnerable Rural Communities in the Valles Macro-region of the Plurinational State of Bolivia (RECEM-Valles)” by the Food and Agriculture Organization of the United Nations (FAO) as contained in document GCF/B.35/02/Add.04 and 10;
   5. Funding proposal 203 titled “Heritage Colombia (HECO): Maximizing the Contributions of Sustainably Managed Landscapes in Colombia for Achievement of Climate Goals” by the World Wildlife Fund, Inc. (WWF), as contained in document GCF/B.35/02/Add.05 and 10;
   6. Funding proposal 204 titled “Sustainable Renewables Risk Mitigation Initiative (SRMI) Facility (Phase 2 Resilience focus) [SRMI-Resilience]” by the World Bank, as contained in document GCF/B.35/02/Add.06 and 10; and 
   7. Funding proposal 205 titled “Infrastructure Climate Resilient Fund (ICRF)” by Africa Finance Corporation (AFC), as contained in document GCF/B.35/02/Add.08/Rev.01;
2. Approves funding proposal 199, submitted by the Food and Agriculture Organization of the United Nations, for the amount of USD 36,231,981, subject to the conditions set out in annex V and in the respective term sheet set out in document GCF/B.35/02/Add.10;
3.  Also approves funding proposal 200, submitted by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, for the amount of EUR 32,823,444, subject to the conditions set out in annex V and in the respective term sheet set out in document GCF/B.35/02/Add.10;
4. Further approves funding proposal 201, submitted by the Food and Agriculture Organization of the United Nations, for the amount of USD 26,273,510, subject to the conditions set out in annex V and in the respective term sheet set out in document GCF/B.35/02/Add.10;
5. Approves funding proposal 202, submitted by the Food and Agriculture Organization of the United Nations, for the amount of USD 33,300,000, subject to the conditions set out in annex V and in the respective term sheet set out in document GCF/B.35/02/Add.10;
6. Also approves funding proposal 203, submitted by the World Wildlife Fund, Inc., for the amount of USD 42,974,559, subject to the conditions set out in annex V and in the respective term sheet set out in document GCF/B.35/02/Add.10;
7. Further approves funding proposal 204, submitted by the World Bank, for the amount of USD 160,000,000, subject to the conditions set out in annex V and in the respective term sheet set out in document GCF/B.35/02/Add.10;
8. Approves funding proposal 205, submitted by Africa Finance Corporation, for the amount of USD 253,755,000, subject to the conditions set out in annex V and in the respective term sheet set out in document GCF/B.35/02/Add.08/Rev.01;
9. Reaffirms that pursuant to annex IV to decision B.17/09, the Executive Director or his designee is authorized to negotiate and enter into legal agreements on behalf of GCF with accredited entities and other parties involved in respect of funding proposals approved by the Board, taking into account any condition approved by the Board in this decision and in the decision accrediting the relevant accredited entity; and
10. Authorizes the Secretariat to disburse fees for each funded project/programme approved by the Board as per the disbursement schedule to be agreed in the funded activity agreement in accordance with the policy on fees and the general principles and indicative list of eligible costs covered under GCF fees and project management costs adopted by the Board pursuant to decision B.19/09

The Board, having considered limited distribution document GCF/B.35/03 titled “Status of approved funding proposals: Extension of deadline in respect of SAP016 (Fiji Agrophotovoltaic Project in Ovalau)”:

Decides to extend the deadline until 16 October 2023 for the execution of the funded activity agreement for the following approved funding proposal:

1. SAP016, titled “Fiji Agrophotovoltaic Project in Ovalau”.

The Board, having considered limited distribution document GCF/B.35/04/Rev.01 titled “Consideration of proposed change included in the restructuring proposal for FP152: Global Subnational Climate Fund (SnCF Global) - Equity”:

1. Approves the extension of the final fund closing date until 20 August 2023 (the “Initial Extension Period”);
2. Also approves the extension of the final fund closing date until 20 January 2024 (the “Final Extension Period”), subject to the accredited entity delivering evidence during the Initial Extension Period that Global Subnational Climate Fund has received legally binding commitments or admitted additional limited partners with aggregate capital commitments of not less than USD 190,000,000 (“Additional Capital Commitments”) on or before the expiration of the Initial Extension Period, with such evidence to be in form and substance satisfactory to the Secretariat;
3. Requests the Secretariat to work with the accredited entity to ensure that the FP152 pipeline related to investment made from any further GCF disbursement is suspended until the Additional Capital Commitments have been secured;
4. Notes that if the Additional Capital Commitments have not been so committed or received on or before the expiration of the Initial Extension Period, the Final Extension Period shall be cancelled and the final fund closing date shall be 20 August 2023;
5. Authorizes the Secretariat to first negotiate and execute the relevant legal agreements to reflect the approval set out in paragraph (a) above; and
6. Also authorizes the Secretariat to negotiate and execute the relevant legal agreements to reflect the approval set out in paragraph (b) above following the delivery of the evidence required under paragraph (b) above.

The Board, having considered document GCF/B.35/05 and its limited distribution addendum Add.01 titled “Status of approved funding proposals: adding host countries in respect of FP198 (CATALI.5°T Initiative: Concerted Action To Accelerate Local I.5° Technologies – Latin America and West Africa)”:.

1. Takes note of the no-objection letters for FP198 submitted by the national designated authorities of Colombia, El Salvador and Peru;
2. Approves the inclusion of Colombia, El Salvador and Peru as host countries for FP198; and
3. Authorizes the Secretariat to negotiate the funded activity agreement for FP198, which shall reflect the changes hereby approved.

The Board, having considered limited distribution document GCF/B.35/10 titled “Status of approved funding proposals: adding a host country in respect of FP078 (Acumen Resilient Agriculture Fund (ARAF))”:

1. Takes note of the no-objection letter submitted by the national designated authority of the United Republic of Tanzania;
2. Approves the inclusion of the United Republic of Tanzania as a host country for FP078; and
3. Authorizes the Secretariat to take such steps as might be necessary pursuant to the funded activity agreements for FP078 to give effect to this decision.

The Board, having considered document GCF/B.35/06 titled “Consideration of accreditation proposals”:

1. Takes note with appreciation of the assessments conducted by the Secretariat and the Accreditation Panel contained within the relevant documents for the following applicants for re-accreditation:
   1. Applicant R012 (RAPL012) is the Caribbean Community Climate Change Centre, based in Belize, as contained in document GCF/B.35/06/Add.02; and
   2. Applicant R018 (RAPL018) is the Inter-American Development Bank, based in the United States of America, as contained in document GCF/B.35/06/Add.03
   pursuant to paragraph 45 of the Governing Instrument for the GCF, subject to, and in accordance with, the assessments by the Accreditation Panel contained in the relevant annexes for each of the applicants, and subject to the completion of Stage III of the accreditation by having an effective amendment to the original accreditation master agreement, in accordance with decision B.24/13;
2. Approves, pursuant to paragraph 45 of the Governing Instrument for the GCF, the reaccreditation of RAPL012, the Caribbean Community Climate Change Centre, based in Belize, subject to, and in accordance with, the assessment by the Accreditation Panel contained in document GCF/B.35/06/Add.02, and subject to the completion of Stage III of the accreditation by having an effective amendment to the original accreditation master agreement, in accordance with decision B.24/13;
3. Takes note of the efforts of the Inter-American Development Bank to advance the purpose of GCF, including through the Inter-American Development Bank’s climate finance efforts in line with its Climate Change Action Plan 2021–2025 and related statements in the context of the United Nations Framework Convention on Climate Change and the Paris Agreement;
4. Approves, pursuant to paragraph 45 of the Governing Instrument for the GCF, the re-accreditation of RAPL018, the Inter-American Development Bank, based in the United States of America, subject to, and in accordance with, the assessment by the Accreditation Panel contained in document GCF/B.35/06/Add.03, and subject to the completion of Stage III of the accreditation by having an effective amendment to the original accreditation master agreement, in accordance with decision B.24/13;
5. Takes note of the assessments conducted by the Secretariat and the Accreditation Panel contained within the relevant documents for the following applicant for accreditation:
   1. Applicant 117 (APL117) is The Nature Conservancy based in the United States of America, as contained in document GCF/B.35/06/Add.04;
   pursuant to paragraph 45 of the Governing Instrument for the GCF, subject to, and in accordance with, the assessment by the Accreditation Panel contained in the relevant annex for the applicant, and subject to the completion of Stage III of the accreditation by having an effective accreditation master agreement, in accordance with decision B.24/13;
6. Approves, pursuant to paragraph 45 of the Governing Instrument for the GCF, the accreditation of APL117, The Nature Conservancy, based in the United States of America, subject to, and in accordance with, the assessment by the Accreditation Panel contained in document GCF/B.35/06/Add.04, and subject to the completion of Stage III of the accreditation by having an effective accreditation master agreement, in accordance with decision B.24/13;
7. Takes note of the status of the fulfilment by accredited entities of accreditation conditions as assessed by the Accreditation Panel contained in document GCF/B.35/06/Add.01;
8. Also takes note that, pursuant to decision B.08/03, paragraph (k), the Secretariat, in consultation with the Accreditation Panel, is proposing that the eligibility to apply under the fast-track accreditation process be extended to those entities listed in annex VI; and
9. Decides that those entities referred to in annex VI are also eligible to apply under the fast-track accreditation process for the standards of GCF in accordance with decision B.08/03, paragraph (f), for entities under the Adaptation Fund.

The Board, having considered document GCF/B.35/07 titled “Second Performance Review (SPR) of the Green Climate Fund: Final Report”:

1. Recalls paragraph 59 of the Governing Instrument for the GCF, which states that “there will be periodic independent evaluations of the performance of the Fund in order to provide an objective assessment of the results of the Fund, including its funded activities and its effectiveness and efficiency”;
2. Also recalls decision B.BM-2021/11 where it initiated the second performance review of the performance of GCF for the GCF-1 programming period, in a manner appropriate to the current stage of GCF operations, while recognizing that GCF will be a continuously learning institution guided by processes of monitoring and evaluation;
3. Takes note of the second review of the performance of GCF undertaken by the Independent Evaluation Unit;
4. Notes the Secretariat’s management response to the evaluation report as presented in document GCF/B.35/07/Add.01; and
5. Requests the Independent Evaluation Unit to submit a management action report to the Board no later than one year following the adoption of this decision.

The Board, having considered document GCF/B.35/11 titled “Guidance from the twenty-seventh session of the Conference of the Parties”:

1. Takes note of this report, including the actions to be undertaken by the Board and Secretariat in 2023 in response to guidance received from the Parties during the twenty-seventh session of the Conference of the Parties, as contained in annex VII, as amended;
2. Requests the Secretariat to prepare for the Board’s consideration and approval a proposal on the financing of results-based payments for REDD+, building on the outcomes of the pilot phase no later than the thirty-seventh meeting of the Board;
3. Also requests the Secretariat to undertake open, inclusive and transparent consultations on the development of the proposal on the financing of results-based payments for REDD+ and further requests the Secretariat to assess the cost implications of the consultations and submit to the Budget Committee a budget request for its consideration as required;
4. Requests the Secretariat to prepare an action plan and timetable focusing on GCF’s enhanced engagement with the local private sector as well as micro, small and medium-sized enterprises in developing countries, including by providing early-stage and grant-based financing to the local private sector and start-ups in developing countries, as part of the Secretariat’s annual reporting to the Board on progress in the implementation of the Private Sector Strategy for consideration at the thirty-seventh meeting of the Board;
5. Also requests the Secretariat to explore options for further enhancing coherence and complementarity with other relevant bilateral, regional and global funding mechanisms and institutions and present these to the Board for consideration no later than the thirty-seventh meeting of the Board; and
6. Further requests the Co-Chairs, with the support of the Secretariat, to include an overview of progress on the response to guidance received from the Parties during the twenty-seventh session of the Conference of the Parties in the twelfth report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change.

The Board, having considered document GCF/B.35/16 and its addendum Add.01 titled “Updated Strategic Plan for the GCF 2024-2027: Co-Chairs’ roadmap”:

1. Takes note of the Co-Chairs’ roadmap setting a process to facilitate the adoption of the updated Strategic Plan for the GCF: 2024-2027 no later than the thirty-sixth meeting of the Board;
2. Decides to hold an informal meeting of the Board, open to active observers, from 16 to 17 May 2023 in Berlin, Germany, with a view to developing a final draft of the updated Strategic Plan for the GCF: 2024-2027; and
3. Also decides that the cost of the informal meeting will be covered by the budget of the Board for 2023, as approved by decision B.34/05.

The Board, having considered limited distribution document GCF/B.34/15 titled “Compliance Review Report: C-0006-Nicaragua: GCF Project FP146: Bio-CLIMA: Integrated climate action to reduce deforestation and strengthen resilience in BOSAWÁS and Rio San Juan Biospheres” and limited distribution document GCF/B.35/Inf.13 titled “Management response to the Compliance Review Report: C-0006-Nicaragua: GCF Project FP146: Bio-CLIMA”:

1. Underscores the seriousness, as reflected in the Indigenous Peoples Policy, of GCF’s role in fostering the full respect, promotion, and safeguarding of indigenous peoples;
2. Recalls decision B.34/23;
3. Takes note of the management response in limited distribution document GCF/B.35/Inf.13;
4. Confirms that this decision is without prejudice to any and all rights of GCF under relevant legal agreements, all of which are specifically reserved; and
5. Decides that the Board will continue to consider this matter at its thirty-sixth meeting.

The Board, having considered document GCF/B.35/09 titled “Independent Synthesis of Direct Access in the Green Climate Fund: Final Report”:

1. Takes note of the findings and recommendations presented in the Independent Synthesis of Direct Access in the Green Climate Fund undertaken by the Independent Evaluation Unit;
2. Notes the Secretariat’s management response to the evaluation report as presented in document GCF/B.35/09/Add.01; and
3. Requests the Independent Evaluation Unit to submit a management action report to the Board no later than one year following the adoption of this decision.

The Board, having considered limited distribution document GCF/B.35/13 titled “Report from the Executive Director Selection Committee”:

1. Recalls decision B.33/16 on the selection process for the Executive Director of the Secretariat;
2. Decides to select Mafalda Madeira Nunes Duarte for the post of the Executive Director of the Green Climate Fund Secretariat for a four-year term;
3. Requests the Co-Chairs, with support as needed from the executive search firm, to negotiate the terms of the contract in accordance with the terms of reference for the position set out in annex XI to decision B.33/16, taking into account the relevant performance management system and criteria for Board-appointed officials; and
4. Authorizes the Co‐Chairs to sign, on behalf of the Board, the contract between Mafalda Madeira Nunes Duarte and GCF

The Board, recalling the imminent end of term of the current Executive Director of the Green Climate Fund Secretariat:

1. Appoints Henry Gonzalez, current Deputy Executive Director, to act as Executive Director ad interim of the Secretariat effective 3 April 2023 and until such time that the incoming Executive Director appointed by the Board by decision B.35/16 has assumed office or the Board has decided otherwise; and
2. Authorizes the Co-Chairs to negotiate and sign, on behalf of the Board, arrangements, as appropriate, with the Executive Director ad interim, including:
   1. By taking into account the relevant performance management system for Board-appointed officials; and
   2. By signing, on behalf of the Board, the contract between the Executive Director ad interim and GCF.

The Board, having considered limited distribution document GCF/B.35/14 titled “Appointment of the Head of the Independent Redress Mechanism Unit”:

1. Appoints Sonja Derkum as the Head of the Independent Redress Mechanism Unit, effective as of the date on which the necessary contractual arrangements have been concluded or as specified therein;
2. Authorizes the Co-Chairs to negotiate and sign, on behalf of the Board, the necessary arrangements between the Head of the Independent Redress Mechanism Unit and GCF; and
3. Expresses its appreciation to the Ethics and Audit Committee and the Secretariat for their work in the process for the selection of the Head of the Independent Redress Mechanism Unit.

The Board, recalling the imminent end of term of the current Head of the Independent Redress Mechanism Unit ad interim:

1. Appoints Paco Gimenez-Salinas to act as Head of the Independent Redress Mechanism Unit ad interim effective 1 April 2023 and until such time that the incoming Head of the Independent Redress Mechanism Unit appointed by the Board by decision B.35/18 has assumed office or the Board has decided otherwise; and
2. Authorizes the Co-Chairs to negotiate and sign, on behalf of the Board, arrangements, as appropriate, with the Head of the Independent Redress Mechanism Unit ad interim, including:
   1. By taking into account the relevant performance management system for Board-appointed officials; and
   2. By signing, on behalf of the Board, the contract between the Head of the Independent Redress Mechanism Unit ad interim and GCF.

The Board, having considered limited distribution document GCF/B.35/15 titled “Appointment of the Head of the Independent Integrity Unit”:

1. Appoints Karen Ernst as the Head of the Independent Integrity Unit, effective as of the date on which the necessary contractual arrangements have been concluded or as specified therein;
2. Authorizes the Co-Chairs to negotiate and sign, on behalf of the Board, the necessary arrangements between the Head of the Independent Integrity Unit and GCF; and
3. Expresses its appreciation to the Ethics and Audit Committee and the Secretariat for their work in the process for the selection of the Head of the Independent Integrity Unit.

The Board, having considered document GCF/B.35/12 titled “Dates and venues of upcoming meetings of the Board”:
 

Recalls and confirms that the thirty-sixth meeting of the Board will take place from Monday, 10 to Thursday, 13 July 2023, in the Republic of Korea.